Nairobi, March 12 -- The State-backed credit guarantee scheme, which seeks to enhance loan access to credit by micro, small and medium enterprises has registered sluggish growth to disburse a cumulative Sh6.2 billion by December 2023 since its launch three years ago.

The scheme, which seeks to share default risks with banks and thereby increase the pool of funds available for lending, had disbursed Sh5.8 billion as of June 2023.

"The credit guarantee scheme established in October 2020, continued to support additional credit uptake by vulnerable micro, small and medium-sized enterprises (MSMEs)," the Central Bank of Kenya (CBK) notes in new disclosures. "As at the end of December 2023, all seven banks had disbursed guaranteed loans to MS...